Board considers $320K compensation boost for Machen

Published: Thursday, June 6, 2013 at 4:55 p.m.

Last Modified: Thursday, June 6, 2013 at 4:55 p.m.

University of Florida President Bernie Machen could earn an additional $320,000 over the next two years for deciding not to retire, under a proposal that will come before the board of trustees today.

The governance committee of the UF board of trustees voted unanimously Thursday to accept a resolution introduced by board Chairman David Brown to extend Machen's contract by a year and raise his total pay package of $565,000 to a minimum of $725,492 for each of the next two years.

That amount could go as high as $750,500 if the board of trustees adopts across-the-board raises for faculty and staff.

Brown said Machen deserved to be compensated for all he's done for the university over the years, most notably his efforts to lift UF into the ranks of top public universities in the United States. Brown said he wished the raise were even more.

"I would have been more aggressive where I place Bernie," Brown said, adding that the increase didn't make up for the bonuses Machen voluntarily gave up in prior years.

During his 10 years as university president, Machen has overseen an increase in faculty research funding from $470 million to $644 million. During his tenure, the campus has expanded by more than 2.8 million square feet of new building space, including new research, student and academic facilities. Machen started Innovation Square, and led UF's seven-year capital plan, raising more than $1.7 billion.

Most recently, Machen got the legislative and financial support that he hopes will propel UF into Top 10 status, securing $15 million for five years and designation as the state's "pre-eminent" university. That legislation also tapped UF to create the state's first fully online baccalaureate program.

The pay increase would put Machen in the 50th percentile among his peers, according to a survey by Mercer, a national compensation consultant. Mercer said Machen's earnings are below market for a president with his list of accomplishments at UF.

Increasing Machen's compensation to the 50th percentile is "more than defensible and reasonable under the circumstances," said Raymond Cotton, a Washington, D.C.-based attorney with Mintz Levin, an outside counsel to the board of trustees.

Speaking via conference phone, Cotton said the board could have boosted Machen's salary into the 75th percentile of around $880,000 for public university presidents.

"When you have a president of such a large research university, the starting point is somewhere north of the 50th percentile," said Cotton, who has made a living out of academic compensation consulting. "But I understand the political situation in Florida and the board's desire to err on the conservative side."

Machen, UF's 11th president, announced his retirement last year and gave the university until the end of 2013 to find a replacement.

Six months ago, only days after the nine-year anniversary of his inauguration as UF president, Machen agreed to remain in his position at the request of Brown and Gov. Rick Scott with the condition the university get support for his goals.

"Making UF a top 10 university has been my highest priority over the course of my tenure at the University of Florida," he said at the time. "Now we stand at a crossroads where we have the potential to make giant strides. I have been asked to remain in office to lead that effort, and I am pleased to do so."

Machen shared some of those plans with the board of trustees during a retreat Thursday morning at Lake Wauberg. He said he and his team have identified 29 categories needed to achieve top 10 status.

The good news is UF is already in the top 10 in 22 of those categories, he said. "We are not starting this game in bad shape," Machen said.

UF is in the top 10 in freshman acceptance rate, SAT scores, grade point average, student success, research and technology transfer, for example.

But it has not achieved top 10 ranking in seven categories, he said. Freshmen are ranked 12th, the six-year graduation rate is 11th, and total federal research expenditures is ranked 13th.

The final four categories relate to faculty. "That is why we have said all along these new resources will be used to enhance faculty," he said.

<p>University of Florida President Bernie Machen could earn an additional $320,000 over the next two years for deciding not to retire, under a proposal that will come before the board of trustees today.</p><p>The governance committee of the UF board of trustees voted unanimously Thursday to accept a resolution introduced by board Chairman David Brown to extend Machen's contract by a year and raise his total pay package of $565,000 to a minimum of $725,492 for each of the next two years.</p><p>That amount could go as high as $750,500 if the board of trustees adopts across-the-board raises for faculty and staff.</p><p>Machen's contract amendment would be retroactive to Jan. 1 and ends Dec. 31, 2014.</p><p>Brown said Machen deserved to be compensated for all he's done for the university over the years, most notably his efforts to lift UF into the ranks of top public universities in the United States. Brown said he wished the raise were even more.</p><p>"I would have been more aggressive where I place Bernie," Brown said, adding that the increase didn't make up for the bonuses Machen voluntarily gave up in prior years.</p><p>During his 10 years as university president, Machen has overseen an increase in faculty research funding from $470 million to $644 million. During his tenure, the campus has expanded by more than 2.8 million square feet of new building space, including new research, student and academic facilities. Machen started Innovation Square, and led UF's seven-year capital plan, raising more than $1.7 billion.</p><p>Most recently, Machen got the legislative and financial support that he hopes will propel UF into Top 10 status, securing $15 million for five years and designation as the state's "pre-eminent" university. That legislation also tapped UF to create the state's first fully online baccalaureate program.</p><p>The pay increase would put Machen in the 50th percentile among his peers, according to a survey by Mercer, a national compensation consultant. Mercer said Machen's earnings are below market for a president with his list of accomplishments at UF.</p><p>Increasing Machen's compensation to the 50th percentile is "more than defensible and reasonable under the circumstances," said Raymond Cotton, a Washington, D.C.-based attorney with Mintz Levin, an outside counsel to the board of trustees.</p><p>Speaking via conference phone, Cotton said the board could have boosted Machen's salary into the 75th percentile of around $880,000 for public university presidents.</p><p>"When you have a president of such a large research university, the starting point is somewhere north of the 50th percentile," said Cotton, who has made a living out of academic compensation consulting. "But I understand the political situation in Florida and the board's desire to err on the conservative side."</p><p>Machen, UF's 11th president, announced his retirement last year and gave the university until the end of 2013 to find a replacement.</p><p>Six months ago, only days after the nine-year anniversary of his inauguration as UF president, Machen agreed to remain in his position at the request of Brown and Gov. Rick Scott with the condition the university get support for his goals.</p><p>"Making UF a top 10 university has been my highest priority over the course of my tenure at the University of Florida," he said at the time. "Now we stand at a crossroads where we have the potential to make giant strides. I have been asked to remain in office to lead that effort, and I am pleased to do so."</p><p>Machen shared some of those plans with the board of trustees during a retreat Thursday morning at Lake Wauberg. He said he and his team have identified 29 categories needed to achieve top 10 status.</p><p>The good news is UF is already in the top 10 in 22 of those categories, he said. "We are not starting this game in bad shape," Machen said.</p><p>UF is in the top 10 in freshman acceptance rate, SAT scores, grade point average, student success, research and technology transfer, for example.</p><p>But it has not achieved top 10 ranking in seven categories, he said. Freshmen are ranked 12th, the six-year graduation rate is 11th, and total federal research expenditures is ranked 13th.</p><p>The final four categories relate to faculty. "That is why we have said all along these new resources will be used to enhance faculty," he said.</p>